value 250 points PA21 Recording Manufacturing and Nonmanufac

value: 2.50 points PA2-1 Recording Manufacturing and Nonmanufacturing Costs, Preparing the Cost of Goods Manufactured Report and Income Statement [LO 2-3, 2-4, 2-5, 2-6] Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as shown in the T-accounts below: The following transactions occurred during April (a) Purchased materials on account at a cost of $233,270 (b) Requisitioned materials at a cost of $110,500, of which $16,600 was for general factory use (c) Recorded factory labor of $224,600, of which $43,175 was indirect. (d) Incurred other costs: Selling expense Factory utilities Administrative expenses Factory rent Factory depreciation $35,100 23,900 50,050 11,800 20,100 (e) Applied overhead at a rate equal to 135 percent of direct labor cost. () Completed jobs costing $262,350 (g) Sold jobs costing $324,470. h) Recorded sales revenue of $519,000. Required 1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.) Raw Materials Inventory Work in Process Inventory Beg. Bal 28,200.00 Beg. Bal. 18,500.00 End. Bal 28,200.00 End. Bal 18,500.00

Solution

Raw Materials Inventory Bal 28,200 110,500 b) (a) 233,270 Bal. 150,970 Work in process inventory Bal 18,500 262,350 f) (b) 93,900 (c ) 181,425 (e ) 244923.75 Bal 276,398.75 Finished Goods inventory Bal 124,800 324,470 (g) (f) 262,350 Bal 62,680 Manufacturing Overhead Beg bal (b) 16,600 244923.75 e) ( c) 43,175 (d) 23,900 (d) 11,800 (d) 20,100 Cost of goods sold (g) 324,470 Bal. Sales Revenue 519,000 (h) 519,000 Bal Selling and administrative expense (d) 35,100 (d) 50,050 Bal. 85,150 3-a) Manufacturing overhead Overapplied 129,348.75 3-b) Decrease Cost of goods manufactured report Beginning raw materials inventory 28,200 Add:Raw materials purchases 233,270 less:Indirect materials 16,600 less:Ending raw materials inventory 150,970 Direct materials used 93,900 Direct labor 181,425 Manufacturing overhead applied 244923.75 Total current manufacturing costs 520,248.75 Add:Beginning work in process inventory 18,500 less:Ending work in process inventory 276,398.75 Cost of goods manufactured. 262,350.00 Income Statement Sales Revenue 519,000 Cost of good sold Beginning finished goods inventory 124,800 Add cost of goods manufactured 262,350.00 less:Ending finished goods inventory 62,680 Unadjusted cost of goods sold 324,470.00 less:Overapplied manufacturing overhead 129,348.75 Gross profit 195,121.25 Selling & administrative expense 85,150 Net income from operations 109,971.25